The mobile market is driving the consumer market

While E-commerce sales via the internet are undoubtedly on the rise, the vast majority of consumer spending habits are still taking place in traditional shop front windows located in towns and cities near you.

But does that mean that internet marketing is not effective?  Definitely not!

The new digital sales cycle

Many of these offline sales are being generated by customers using online research prior to purchasing.  Customers continually report using their desktop and mobile phones (or ‘apps’) to research their purchases online before venturing offline to seal the deal.

Additionally, customers are also taking advantage of their mobile technology and the capabilities of their smart-phones by researching products while in a store or on the go.  This is reflected in the growth of technology tools such as QR codes to direct mobile users to specific production information in the store.

New data

According to a recent report summarized on eMarketer.com, statistics show that some 70% of consumers will check an online source before visiting a local store, business or restaurant. Google was the top source as stated by customers to gain this information, followed by Yellow Pages. Further down the list were review sites and Facebook.

A few statistics related to search include:

• 70% of customers will check an online source ahead of shopping
• 17% of customers rely on the top link in a search engine
• 15% of customers will check an item in-store on a mobile device
• 13% more of customers will use Google over any other search facility
• 13% of customers will rely on other customer’s reviews

How can the mobile market benefit me?

What this information tells us is that customers rely heavily on technology, mobile devices and the internet to find the services and products they require and that they are smart shoppers!

More and more research is being compiled on mobile services to find out why customers shop this way and what they require to make a compatible sale. From apps, surfing the web, to contacting stores, the device in the palm of their hand is a gateway to boosting your sales!

Top mobile incentives include:

• Coupons
• Reward schemes
• Product information
• Access to a product within their proximity

What this information already tells us is customers are always searching for a more convenient and satisfying service. By understanding how, we are able to implement exclusive services and products to customers build relationships and customer loyalty.

Top ways to engage mobile web users

• Better meeting the customer’s requirements
• Offering exclusive content on web and mobile optimized websites
• Focused online and mobile marketing tactics
• Better on and offline communication between companies and customers
• Brand loyalty and versatility

Apparently internet marketers like us aren’t the only ones who wonder why you still get a new yellow pages book every year even if you don’t ask for it.  In San Francisco, a town often noted for being the first place to pass interesting legislation, the Board of Supervisors voted 10-1 in May to prohibit the distribution of yellow pages except to residents or businesses that want them and have “opted-in.”

Did California get it right this time?

Let’s be honest, it’s 2011 and with the strain on our global resources doesn’t it make sense to limit the unnecessary use of large quantities of materials unless they are really needed?  So while California takes their “green” living a little more seriously than a lot of areas, we have to at least applaud the effort to curtail businesses from handing out huge books that a lot of people don’t want or need anymore.

NEED is probably the operative word in this movement.  I remember a few years ago having a smaller yellow pages book in my truck and thinking it was a cool idea to make the book portable so I could find something while on the road.  But after the last 2 years who DOESN’T have a mobile friendly phone with the ability to “Google” anything you want from the intersection of your choosing (hopefully while at a stop light)?

Marketing implications

This trend toward being digitally mobile will have greater effects than just limiting the distribution of the yellow pages.  But the reality is many businesses will have to face what they’ve probably known for years – that relying on advertising in print publications isn’t going to be enough to effectively market their businesses.

The yellow pages have historically been a tool for driving local marketing efforts.  So what can businesses do to replace that type of exposure?  Here are a few tips for the digital age:

• Claim your “local” business listings on Google, Yahoo & Bing
• Participate in other local directories such as Merchant Circle or Insider Pages
• List your business on review sites like Yelp or Angie’s List
• Optimize your website for local areas and phrases
• Invest in a mobile friendly website
• Learn about new trends in text message marketing

Is the newspaper next?

Every Thursday the local newspaper throws a “freebie” paper in my driveway even though I’m not a paying customer.  I guess they are hoping that I’ll see it, flip through it and maybe become convinced enough to become a subscriber.  They had better not do this in San Francisco or the newspaper might be next on the list!

Over the weekend, I had an interesting discussion with my 53 year old neighbor who still “takes the paper.”  The topic was the newspaper, and how long we thought newspapers would still be tossed in driveways across America.  Watching what’s happening with the internet and mobile devices, it’s hard to imagine that newspapers in their current form last more than another 20 years or so.

And while I have no doubt that the news organizations behind them will last longer than that and serve a critical role in each local community, I’m convinced that the process of delivering their news via paper, trucks and people will evolve sooner rather than later.

We’ll just keep an eye on San Francisco to see when they make newspapers illegal next!

Don’t let these big trends pass you by

2010 marked a big year in the world of marketing, and the trends show a drastic shift in the allocation of marketing dollars from traditional outlets to the digital marketing world.  Among the notable milestones were:

• Spending on social media advertising is up around 30% from last year and is expected to top the $2 billion mark in 2011! Source: Mashable
• Spending for online advertising passed newspaper advertising.  Source: WSI
• Online advertising spending rose 13.9% for 2010 and is projected to pass the $25 billion mark in 2011. Source: EMarketer
• Mobile subscribers are estimated to surpass 5 billion in 2010 (that’s over 70 percent of the world population) and growing rapidly, led by China and India.  Source: MobiThinking

What does this mean for you?

In a nutshell, it means that if you’re concentrating your marketing efforts solely on things that worked in the past it’s probably time to re-consider that practice.  And while we would never suggest abandoning “tried and true” marketing practices that provide ROI for your business, I would strongly recommend beginning to allocate some resources toward digital marketing so that you can begin to gain a foothold.

Every business is different, so it’s hard to make blanket statements.  However, as we walk the streets and see just about everyone spending time on their web ready mobile devices, it doesn’t take a big thinker to realize that this trend towards the digitization of marketing is not slowing down anytime soon.

5 components of digital marketing strategy

The whole idea of “digital marketing” is evolving, but if you want to get a holistic view of the concept, there are 5 core components:

1. Web properties – such as your company website
2. Building traffic – helping people find your website
3. Social media – joining in the conversation with online users
4. Mobile marketing – text and location based marketing
5. Measuring / Analyzing – evaluating results to determine ROI

Creating a marketing plan for 2011

So back to our original headline and the desire to find a marketing plan that capitalizes on the opportunities available in 2011.  Generally speaking, if you haven’t embraced the digital marketing components mentioned above, than it’s time to do so.  How much you do depends on your resources and goals, but continuing to avoid them will eventually put you behind your competitors.

Specific actions you can take include:

• Take a hard look at the ROI from your past marketing efforts. If your marketing practices from the last couple of years aren’t producing satisfactory ROI, it’s time to re-tool.  Many people are expressing frustration with increasing costs and decreasing results from traditional marketing activities.
• Look at how you could use digital marketing in your business. Every business is unique, and not all of these digital marketing opportunities make sense to invest in.  However, if you look carefully, chances are you could find 2-3 of these opportunities in your business that would bring new opportunities in 2011.
• Be realistic. In this economy, businesses have to be smart with their budgets and showing ROI has never been more important.  So if your company has an outdated website and low monthly traffic, than trying to tackle social media may have to wait.  Our recommendation is to find the opportunities that would have the highest impact and focus on those in 2011 without trying to do them all just for the sake of doing them.

Don’t be afraid to ask for help

Chances are you’re plate is already full depending on what your role is in your company.  Implementing major changes to marketing plans takes time and sometimes a little advice from someone who is not too close to the situation.  Don’t be afraid to bring in someone to help you understand the digital marketing opportunities and make sense of them in terms of how they apply to your business.

Disney embraces digital media

This past week we finally got back to Disney World (Orlando) after an 8 year absence and I was struck by the changes in the “happiest place in the world.”  Yes of course many things had remained the same – international employees from all over the world, waiting in line to meet Mickey and most of the nostalgic rides are all still there.

But one of the things that I noticed is so much different is the way Disney is allowing people to interact and get more out of their visits. In addition to the usual stuff, Facebook pages, You Tube Channels and one Twitter account with nearly 70k or so followers, Disney has gone above and beyond in their digital marketing efforts.

A few things I noticed about how Disney is using digital marketing to improve the customer experience:

1.  Mobile applications - Mobile apps are now the rage everywhere and Disney is no different.  Now you can find out in real time what the wait times are for various attractions, check on the show times and find out where your characters are throughout the park – all from your mobile device.  So no more running across the park to find out what the wait time is for your favorite ride.

Not only is Disney sporting it’s own mobile app, but there are tons of third part apps out there too (for a small fee of course).  And it seems just about the only thing the new mobile apps can’t do yet is secure a Fast Pass for you -but I’m sure that’s coming soon too.

2.  Book everything and anything online - I have to give credit to the Disney web guys as they have done a bang up job on the park websites.  They are colorful, have a clean layout, and offer you the opportunity to book anything you can think of online.   We booked several activities at the last minute in the hotel room right from websites and saved our receipts on our mobile devices – now that’s 2010!

Hat’s off to you  Mickey

So as a fellow “digital marketer”, my hat’s off to the Disney folks for embracing new digital technology and making it a seamless part of visiting the parks.